Socio-economic impact assessment

Socio-economic setting –Kitikmeot Region of Nunavut –affected parties included individuals, families, communities, Nunavut government, federal government

Socio-economic findings and conclusions Approach –Mitigation-by-design projects come with employment and business opportunities employment comes with benefits mitigation-by-design is the first line of mitigation –Consultation with community representatives and regulators 5 Kitikmeot communities + Iqaluit and Ottawa –KIA, hunters and trappers, community leaders, nurses, RCMP, wellness centre coordinators, elders, government regulators, teachers

Socio-economic findings and conclusions –Review of the outcome of previous assessments –Shared research reports –Confirmation of findings, conclusions and proposed mitigation 5 Kitikmeot communities + Iqaluit and Ottawa –KIA, community leaders, wellness centre coordinators, government regulators

Socio-economic findings and conclusions Data: Economic analysis –metal price information comes from banking institutions; experts that track future metal prices mid-point = historic lows and current prices and projections –only current dollars used in the report –primary sources of information Stats Canada - community profiles, Aboriginal Peoples Survey, Final Demand Tables for Nunavut for the I/O calculations, Stats Canada Financial Management Statistics, CANSIM, Table , statistics generated by the Labour Division of Stats Canada

Socio-economic findings and conclusions Data –Zinifex completed its assessment based on information available until September 2006 prior to final hearings, Zinifex will consider current data and redo some of the analysis –acknowledge the need to correct for referencing

Socio-economic findings and conclusions Issues and outcomes –Employment (skills and competition) 290 jobs during operations –job exposure positions –full-time positions –part-time / temporary positions limited skills pool in the Kitikmeot - only 20% of positions filled by Kitikmeot residents at beginning –skills survey; % Gr. 10 completion; job competition –equivalency testing / criteria to consider hiring of people with experience but not formal training

Socio-economic findings and conclusions Issues and outcomes –Education and Training (skills and education) mentoring programs to advance Kitikmeot employees –more Kitikmeot residents with semi-skilled and managerial experience apprenticeship positions scholarships –more high school graduates partner with GN on training programs aka Miramar [objective is to have 43% of the employees from the Kitikmeot]

Socio-economic findings and conclusions Issues con’t –Business opportunities (contracting and entrepreneurship) preferential contracting for Inuit firms diversification other employment opportunities not at the mine site early notification of contracting opportunities –Community Economic Development opportunities for youth balance between wage and traditional economies meet community aspirations for improved economic conditions based on plans available in 2005 and 2006

Socio-economic findings and conclusions Issues con’t –Infrastructure new infrastructure in the Kitikmeot creating opportunity limited use (if at all) of community resupply infrastructure –Royalties, rents and taxes financial benefits for the KIA, NTI, GN and federal government –Social Issues drug and alcohol abuse potential managed with counselling information on STIs and condoms will be available at the work site

Socio-economic findings and conclusions Issues con’t –Community Services pressure on Wellness Centres potentially increase but employees will be encouraged to use EAP –contractors will be asked to provide employee assistance programs for contractor employees loss of employees to mine jobs expected; individual choice –Zinifex providing work experience

Socio-economic findings and conclusions Issues con’t –Institutional Capacity competition for professional labour demand for programming especially local training and education –Zinifex expects to partner with GN on training opportunities

Socio-economic findings and conclusions Issues con’t –Renewable Resource Use participation in traditional activities expected to continue, but pattern of participation will change –Cultural Sustainability access to wages may increase ability to hunt and facilitate access to country food Inuit languages not affected by the Project

Socio-economic findings and conclusions Mitigation –three tier approach Zinifex alone to mitigate impacts to the point of not adverse –designed to adequately mitigate for impacts Zinifex + partner to enhance benefits beyond Zinifex alone –proposed to enhance mitigation already proposed by Zinifex Third party (primarily government) to enhance measures even further NB. The IIBA was considered a means by which to ensure that mitigation measures are implemented. It was not considered mitigation

Socio-economic findings and conclusions Monitoring –preliminary monitoring plan proposes based on findings –agrees that input and cooperation of a variety of parties is needed to develop an effective monitoring program

Socio-economic findings and conclusions Monitoring –use new data from Stats Canada as the base for monitoring programs –Human Development approach develop a more holistic picture of changes happening in the Kitikmeot –have and have not –disposable income –drug and alcohol concerns –gender